Sequestration Without Property

The surrendering of your estate is a process instituted by the Courts to help persons that are no longer in a position to honour their debts due to unforeseen circumstances and legally puts you in a position to keep assets.

Voluntary surrender enables you to regain normality in your financial affairs – so that you are able to adjust your lifestyle according to your income. You will be able to live normally because your affairs have been sorted out legally by the High Court. You have an answer for those creditors that phone you day and night from “private numbers”. You will no longer fear that the Sheriff may make an unwanted house call and try to attach your possessions.

A short summary of the procedure

1.We publish an advert in the Government Gazette and the local newspapers to prevent any further legal procedures against you, which includes execution notices and seizure of your movable assets.

2. A statement of debtor’s affairs, listing all your debts, is drafted that you have to sign before a Commissioner of Oaths. This document is submitted for inspection to the Master of the High Court for 14 days and/or lodged with the local Magistrate. It is of utmost importance to provide a 100% accurate list of all your creditors, to prevent unwanted embarrassment and difficult situations after sequestration.

3. A registered letter is sent to each of your creditors notifying them of the surrendering of your estate. Your creditors are free to contact our company for additional information. You will also be provided with the same letter to deal with your nagging creditors.

4. The South African Revenue Service is also notified, even if you are not registered with SARS.

5. A founding affidavit is prepared giving full details of your personal circumstances as well as the reasons for your financial predicament. This will include recent statements of all outstanding accounts.

6. On the court date an Advocate will present the application on your behalf. There is no need for you to attend the court hearing in person. We will notify you of the outcome.

7. After the application has been approved and granted by the High Court, a curator is appointed by the Master of the High Court to handle all financial matters on your behalf. The curator will contact you to arrange a consultation to explain the details to you. If you live outside of Cape Town or in Gauteng, Mpumalanga, North West or Limpopo a telephonic consultation will suffice.

8. The Court Rules determine that you pay an agreed percentage of the debt to your creditors. This percentage varies from province to province. For example if your total debt is R100 000.00 you may pay R35 300.00. A fixed fee is already included in the amount payable so that you will not be caught off-guard with unexpected attorney or curator costs. The benefit of this formal legal process is that the repayment amount does not accrue interest. Arrangements may be made with the curator to settle the amount in instalments over 18 to 24 months. Written permission is needed from the curator when the instalment agreement is accepted. Therefore, if you owe R100 000.00 you may repay the R35 300.00 in instalments of R1961.11 per month for 18 months – with no further interest or costs thereon.

9. To generate the money in terms of the Rules of Court the following is done:

9.1. We will forward you a document, listing general household items where you have to identify your assets and describe each item in detail e.g. TV – Sansui 54cm etc.

9.2. This document will be forwarded to the valuator, who will contact you and arrange for a visit to establish the value of the items. This is to verify the value of the movable assets according to the Rules of the High Court.

9.3. A purchase agreement, prepared by the curator, will be presented to you in order to assist you in buying your assets back. *No furniture will be removed.

9.4. As soon as the application has been approved and granted, the curator will contact you to confirm the details in respect of your assets. * Failure to comply with the arrangements made with the curator will result in removal of the furniture.

10. We will communicate with you on a regular basis to keep you updated with the progress of your application.

WHAT HAPPENS TO YOUR VEHICLE?

1. Hire Purchase agreements are part of your application for sequestration. Arrangements to keep your vehicle need to be made with the financial institution prior to a sequestration application. If your vehicle is under hire purchase, the Rules of Court stipulate that any bank may repossess the vehicle. Should the instalments on the vehicle be up to date, financial institutions are willing to consider your request to keep the vehicle more favourably. This is often accepted but there is no guarantee that you will be able to keep the vehicle, even if the instalments are up to date.

2. Lease agreements where a residual payment is required, do not form part of your sequestration application.

3. Vehicles paid by you but registered in another persons name will not form part of the estate.

1. You will be insolvent for at least the next four years. During this period you will not be credit worthy. You may receive permission from you curator when you need to purchase a vehicle after a period of twelve months. This permission will depend on a record of regular monthly payments to the curator. Please note that the financial institution may require someone to sign surety and have the final say on your loan application. This is a maybe and not a definite.

2. Your bank accounts will be limited to a savings account. You may not have a cheque account or a credit card facility. You may under no circumstances engage in any debt arrangements.

3. Only a successful Application for Rehabilitation will ensure that your name is cleared. This application is normally lodged after four years from the court date of your Sequestration. There are circumstances where you can apply for rehabilitation after 24 months but this is an exception rather than the rule.

ADVANTAGES OF SURRENDERING YOUR ESTATE: 1. Your salary and other income are your own and you will not have to pay your creditors. All your old debts that formed part of your sequestration are written off.

2. Only your creditors are notified of the process and not your employer or any other person. You will not be discharged from your employment as a result of it.

3. You will not have to attend Court.

4. The curator may arrange with your financial institution (the bank) to keep your vehicle and if your instalments are up to date, to enter into a lease agreement. (Final decision remains with the financial institution).

5. You and your family will get used to live without debt. You will know the difference between “needs” and “wants”. We have many satisfied clients who do not even want to apply for Rehabilitation. They enjoy a life without debt. Very important: FINANCIAL FREEDOM – NO MORE SLEEPLESS NIGHTS - you and your family can start afresh, a new beginning. You do not have to be afraid of unknown numbers on your mobile. It is better to face a problem and sort it out rather than run away from it. It will not disappear.

JURISDICTION:

Please note that our offices are situated in Melkbosstrand, Brackenfell (Western Cape) and Pretoria with jurisdiction in Gauteng, Mpumalanga, North West, Limpopo and the Western Cape.

OUR FEES:

1. The initial cost of the application amounts to R 7 800.00. This includes the fee for the Advocate who attends Court on your behalf. The advertisement in the Government Gazette amounts to R 81.20 and the local newspaper costs R 800.00. We pay the valuator an amount of R2 500.00. Registered mail that is sent to your creditors – amounts to R 23.70 per letter. This also includes necessary telephone calls, e-mails and faxes which we send on your behalf. Banking details will be furnished to you.

2. Payment in the amount of R 7 800.00 is required before we commence with the application for the surrendering of your estate. This is to pay the initial costs for the Advocate, Valuator, Government Gazette and newspaper advertisements etc. We will furnish you with a letter that will indemnify you from paying your creditors to enable you to pay the R 7 800.00 with ease. (You are welcome to test the market to see what other attorneys charge before any application or even a consultation is scheduled, usually it equates to around R 18 000.00, and attorneys in Johannesburg/Midrand and Cape Town ask R 30 000.00 to bring an application).

3. The initial fee may be paid over two months although we can only start the process after we have received the full amount of R 7 800.00. It is company policy and no exceptions will be made – thank you for understanding.

We are sincerely committed to give you the best advice at all times. With 20 years experience in this field we can assure you of a proven track record and many satisfied clients. Your application will be handled with discretion at all times.